Brian Armstrong, the chief executive officer of Coinbase Global Inc. (NASDAQ:COIN), addressed the ongoing challenges in enacting legislation that aims to regulate the cryptocurrency market structure. On Thursday, he made an appeal to Congress to implement laws that guarantee a balanced competitive landscape for all companies operating within the United States.
Speaking in an interview with CNBC, Armstrong stressed the necessity for legislative clarity on the permissible and impermissible activities within the crypto space. "This is allowed, this is not allowed. Now, all American companies compete. Try to build the best products and services," he stated, emphasizing the need for transparent rules to foster innovation and competition.
However, Armstrong was critical of the possibility that established banks might exert disproportionate influence to suppress emerging competitors. "Whats not great is if the banks can put their thumb on the scale to try to kill some of their competition," he asserted, highlighting concerns that banks could leverage regulatory frameworks to limit growth opportunities for crypto firms.
Armstrong also spotlighted the consumer rights aspect of the debate, particularly focusing on the capacity of Americans to earn returns on their funds held in stablecoins. "People in America should be able to earn more money on their money," he remarked, referencing the existing stablecoin rewards programs. He committed to advocating continuously for Coinbase customers and the broader community of approximately 52 million Americans engaged in cryptocurrency usage daily.
In context, stablecoin rewards are a significant revenue channel for Coinbase. These rewards primarily derive from interest on USDC reserves, a stablecoin managed in partnership with Circle Internet Group (NYSE:CRCL). The Federal Deposit Insurance Corporation (FDIC) recently reported that the average annual percentage yield for savings accounts nationwide stood at a relatively low 0.39% as of December 2025, underscoring the attractiveness of higher yields offered by some stablecoin programs.
Armstrong's remarks follow Coinbase's strategic decision to withdraw its endorsement of the cryptocurrency market structure bill, just hours before a scheduled vote in Congress. This withdrawal triggered the indefinite postponement of the bill's markup session.
The central point of contention within the bill concerns a proposed regulation that would bar cryptocurrency platforms from providing yield rewards on dormant stablecoin balances. Notably, this limitation would not extend to traditional banking institutions that continue to offer interest payments on dollar deposits, raising concerns about regulatory disparities.
Following these developments, Coinbase's stock experienced notable volatility. On Thursday's regular trading session, shares closed down by 6.48% at $239.28. Nonetheless, in the after-hours market, Coinbase shares rebounded slightly by 1.01%, reaching approximately $241.70, according to Benzinga Pro data.
Despite this brief recovery, Coinbase's stock exhibits a downward price trajectory across short-, medium-, and long-term measures, as reflected in poor momentum rankings from Benzinga's Edge Stock Rankings. This suggests persistent challenges in market confidence or broader sector dynamics impacting the company.